Cabinet Approves Bill to Amend Social Security Levy 📈

• Key Update: The Cabinet has cleared a draft Bill to amend the Social Security Contribution Levy (SSCL) Act, No. 25 of 2022. The legislation aligns with the 2026 Budget proposals to modernize the tax framework. • Tax Base Expansion: While specific rate changes were not confirmed by the Cabinet Spokesman, the 2026 Budget previously proposed reducing the registration threshold from Rs. 60 Mn to Rs. 36 Mn annual turnover (effective April 1, 2026), likely bringing more SMEs into the tax net. • Sector Impact: • Automotive: Proposed shifting of SSCL collection to the point of import or manufacture, exempting subsequent resale. • Agri-Commodities: Coconut oil and palm oil imports are expected to move from the Special Commodity Levy to the standard SSCL/VAT structure. • Manufacturing: Continued focus on leveling the playing field for local producers against imported goods like textiles. • Status: The Bill has received Attorney General clearance and will be gazetted before being presented to Parliament for final approval.